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Updated · Reuters · Apr 22Fed Rate Cut Expectations Pushed Back Amid Inflation Fears and Geopolitical Tensions
53 articles · Updated · Reuters · Apr 22
- Federal Reserve rate cuts are now expected to be delayed until late 2026 due to inflation risks from the Iran conflict.
- Former Fed Chair Janet Yellen still sees a single rate cut possible this year, but markets have largely priced out multiple cuts.
- Rising energy prices and political pressures are complicating the Fed’s policy outlook, with uncertainty elevated over inflation and growth risks.
With markets and economists so divided, what hidden factor will decide the Fed's next move? Will the new Fed Chair prioritize fighting inflation or bow to pressure for lower rates? How will the ongoing Iran conflict impact the Fed's ability to control domestic inflation? Is AI an inflationary threat or a deflationary force that could trigger surprise rate cuts? Can risk assets like Bitcoin truly rally while the Fed's balance sheet continues to shrink? As debt costs surpass $1 trillion, is the era of an independent Federal Reserve over?